This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovation web site by David Ing.

Introduction by Kyoichi Jim Kijima

Presentation scheduled by Steve Haeckel, couldn't attend due to family

Marianne Kosits

Co-author of article in Systems Research and Behavioral Science

[Marianne Kosits]

Have worked with Steve Haeckel over 15 years

Card trick on color change

All businesses are service systems

All businesses are service providers

Requires changes in strategy, structure and governance

New sensors have to be identified and placed into a market that yet may have to be identified, to see the signals to be responded to

A history of service in IBM

1960s: IBM means services

IBM couldn't be effective unless had effect on customer, impacted the way that IBMers thought and behaved

1968: Unbundled

Hard to take service apart from the product, what is profitability by account

1969-1991: Struggle to make service a business

1991-?:

Struggle to reconcile service / product business models

Capitalization of services

Proposed systems management as a service, executives found a good idea, but didn't know how to charge for it

Start from the customer, and work back into the organization

A game changer:

What would it mean to be an organization that responds most effectively to what is actually happening ...

.. as opposed to being most efficient in executing plans for what was predicted to happen?

Working from the needs of the customer; then how to compose capabilities and resources of the company

Make and sell thinking versus Sense and respond thinking

Chinese manufacturer repair person consistently found potatoes in the hoses: washing not just clothes, but also vegetables

Now baskets for vegetables and for clothes

Unnatural acts in a make and sell organization

Unnatural acts in a sense and respond organization

Traditional dichotomy: pick your purpose

Beyond budgeting roundtable

Peter Drucker business exists to supply goods and services to cusotmers

Robert Kaplan: business has only one constituent, its shareholder

Not just changing strategy and structure, but organizational thinking

A service-centered alternative, business purpose as a beneficial effect, rather than an output

Each of the three above levels have different levels of accountabilities

Role and accountability designs: value-producing architecture

Orchestra versus jazz

Way forward scenario

Book traversal links for 2009/02/25 11:10 Marianne Kosits, "Business as a Service System", Open Seminar on Service Systems Science, Systems Sciences Meet Service Sciences, Tokyo Institute of Technology